7 June 2007

2 minute read

Europe

Neil Kennedy - Managing Director of The Cheese Company

Milk Link is appointing OMSCo to undertake the marketing and haulage of its organic milk pool. Yeo Valley – the UK’s leading organic dairy brand, and The Cheese Company – the UK’s largest cheese maker owned by Milk Link, have formed a strategic partnership to develop the organic cheese market.

The agreement between Milk Link and OMSCo will result in improved collection densities and milk utilisation. These supply chain efficiencies will ensure customers of both organisations benefit from greater flexibility as well as security of organic milk supplies, whilst Milk Link’s Organic Members will also benefit from the projected efficiency savings.

In addition, the combining of the milk pools will be complemented by more effective balancing through the production of organic cheese by The Cheese Company. This will give greater stability and reassurance to producers as on a sustainable basis they seek to increase production to meet the growing demand for organic dairy products.

The forming of a strategic partnership between Yeo Valley and The Cheese Company will focus on growing the, as yet under-developed, organic cheese market. Under the agreement, The Cheese Company will license the Yeo Valley Organic brand to produce, and market, a range of top quality organic cheeses. It will also take on responsibility for the sales and distribution of Yeo Valley’s existing organic cheese range.

Neil Kennedy, Managing Director of The Cheese Company, commented, “We believe this marks a major step forward in the development of the organic dairy market. Through closer co-operation we will be able to leverage greater cost savings, create greater market stability and build further customer confidence through being able to deliver innovative products, higher service levels and security of supply.

“Our move into organic cheese will complement The Cheese Company’s position as the leading producer of British cheeses. We believe that there is a strong opportunity to grow sales of organic cheese and that by combining the undoubted strength of the Yeo Valley Organic brand with the unrivalled cheese making reputation of The Cheese Company we will create a strong offer for both our customers and their consumers.

“The strategic partnerships announced today are, we believe, clear examples of how the British dairy industry can work together to forge a sustainable future. At Milk Link we are committed to being at the forefront of such developments and will seek to identify and exploit further synergies across the industry.”

Nicholas Saphir, Executive Chairman of OMSCo, also welcomed the new initiative. “This will help to bring further efficiencies into our operations including haulage which will benefit our customers and members in terms of reduced costs and greater flexibility.”

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